Debt Recovery

We have carefully shortlisted a handful of collection agencies based on our 20 years of experience in the debt collection industry. Simply fill out our Contact Us form, and we will connect you to a cost-effective Collection Agency with extensive experience in your industry.

How much should a Collection Agency Charge?

• Low-cost Collection Letters service should cost between $10 to $18 per account. This is ideal for debts less than six months old. Your Collection Agency should encourage you to use this service, and even offer a recovery rate guarantee for this step.
• Contingency rates for Collection calls and Legal Suit should be no more than 35% to 45%. These services are ideal for accounts over 180 days past due.
• Your collection agency should offer a 5% discount if your volume is high or if the average balance of your accounts is over $2,500.
• They should have a strong network of nationwide lawyers to file a legal suit if all other recovery efforts fail.

Did you have a bad experience with your current Collection Agency?

Have you ever fallen for a debt collection agency claiming to be the cheapest and best and later found out that

• It was not precisely correct.
• They have simply cut a few essential steps of the standard debt collection procedure to make their pricing cheaper than others. In other words, they sold you an inferior product.
• They offered no customer support after you signed the contract. Were your calls forwarded to a call center located in a foreign country that did not speak good enough English? Weren’t you very concerned that your and your debtor’s sensitive data is being shared and handled by non-American staff? Are these debt collectors handling the data of your debtors securely or not?
• Collection services that were demonstrated turned out to be sub-standard and resulted in lower than average recovery rates.
• Your agency did not do a Change of address, Bankruptcy check, and most importantly, the Litigious-debtor check to protect you from potential counter lawsuits.
• Made you buy too many accounts, products, or services, or they came with a 1 or 2-year expiration date?
• You bought cheap service earlier, just to realize hidden fees were attached.

Oh, let’s not stop here.

For the Collection Calls service, we have heard these taglines

* No Recovery – No Fees ( Read it: We are pushing you for Contingency only collections since our collection agency earns most from it. Did they even offer you the low-cost flat-fee Letters Service.)
* Whatever we collect – You keep half and we keep half ( Read it: Contingency fee is 50%. Too high. Anything over 40% is high.)

You get what you pay for!

No collection agency will give you a super cheap package without removing some crucial steps, cutting corners, outsourcing to a foreign country, providing inferior customer support and leaving you more prone to lawsuits.

What to look for to shortlist a Good Collection Agency?

Go for the collection agency that offers superior services for the optimum cost to get maximum returns for your buck. The difference in cost or commissions charged between an inferior collection agency and a full-service collection agency is not more than 10%, but the results are drastically different. Your super low-cost collection agency search can leave you with an inferior debt recovery service.

Collection Agency should definitely offer these services:

• Offer all three scrubs – Change of address, Bankruptcy check and Litigious customer check.
• Should offer full service of 5 collection letters, nothing less.
• Should not put an expiration date on accounts purchased under the collection letters service.
• You should be able to buy accounts in bulk to avail cheaper pricing.
• Should send collection letters in “Colored Print”, and not in plain Black and White. A colored print is known to grab an immediate debtor’s attention more than a boring B/W print.
• Should have all operations located in the USA and/or handled by USA citizens or residents. This includes Customer support, Debt Collection agents, Software development and Call Centers.
• Should offer credit reporting to agencies like Equifax, Transunion or Experian.
• Should offer collection activities in both English and Spanish.
• Should offer an Online Client Portal where you can submit accounts, stop/pause collection activity on an account, report payments and monitor performance.
• Should have a PCI or a SOC 1 security certificate.
• It should be insured, certified and bonded. It should be licensed to collect in all 50 states of USA.
• Should follow all FDCPA collection laws and regularly screen or train their debt collection staff for it.
• Do background checks of their debt collectors before hiring.

A low-cost collection agency is desirable, but it should not offer inferior services.

Contact us if you are looking for a full-service, well-priced collection agency with experience in your industry.

Utility companies like Propane, Heating oil, and Gas exploration industries are the backbone of the American energy industry. These fuels are used for heating, transportation, cooking, hot water, refrigerants, aerosol propellants, and vehicles. A variety of companies are involved in the production, marketing, storage, fabrication of tanks, distributors and transportation of these fuels.

Propane, Oil and Gas companies often face severe cash flow issues due to a large number of accounts receivable. These past-due receivables can be several unpaid B2B or B2C bills. Recovering money on these delinquent accounts can become extremely tough if adequate measures are not taken on time.

Serving Energy Industry Nationwide Need a Collection Agency? Contact Us Delivering High Recovery Rates

Strong recovery actions are required on accounts that become over 90 days past due. This is where a debt collection agency with extensive experience in the energy sector steps in and cost-effectively recovers maximum money. Collection agencies are experts in recovering from even those hard-to-collect accounts receivable.

The outstanding debts for the Oil, Gas and Propane industries can be B2B and B2C. Therefore it is important to hire a collection agency that performs both consumer and commercial collections.

Propane is widely used in air conditioners, water heaters, drying clothes, lighting, cooking, food refrigeration, and fuelling fireplaces.

Cost of Debt Collections:

Commercial collections are contingency fee-based. The cost varies between 20% to 40% depending on the outstanding amount and age of the debt. In contingency collections, if an agency does not collect, they do not get paid. No recovery-No-Fees.

Consumer collection includes low-cost debt collection demands for an average of $15 per account. For debt collector calls, contingency rates of around 40% apply.

Contingency fees for filing a legal suit cost between 35% and 50%.

A collection agency will advise you on the best and most cost-effective service to recover money. If the account balance is high, lower collection fees can be negotiated.  Your energy and propane collection agency should maximum recovery for an optimum cost.

Contact us if you need a collection agency with experience in recovering money for utility companies like propane, heating oil and gas industries.

 

There are about 5000 collection agencies in USA, and selecting a good collection agency can be a daunting task when each agency claims itself to be the best.

Need a Collection Agency for Your Business? Let us help you to find one. Contact us  A cost-effective third-party collection agency with extensive experience in recovering money for doctors and small businesses while preserving your business terms with your clients.

How to Select a Good Collection Agency?

We will try to simplify the process for you here. We have personally been in the collections industry for the last 20 years. This analysis is based on our very own personal experiences and opinion.

1. Debt Collection Agency Size:

❌ SMALL AGENCY: A collection agency with less than 20 employees will surely be hungry for growth but lack licensing in all states. It will also lag in technology, data security, and providing you performance reports. They may not necessarily have debt collectors with experience in your particular industry and likely operate in only a one-time zone.

❌ VERY LARGE AGENCY: A large third-party collection agency (with over 500 employees) will certainly have more headcount and branches but will lack personal attention. They will surely be rich in technology and have a nationwide collection license, but unless you are a client who submits over 2000-5000 accounts a year, you will likely feel a lack of personal attention. Due to the large volume they deal with, their collection rates are just average. Upper management will likely focus on generating higher profits for themself and getting new clients instead of focusing largely on recovery rates and client retention.

✅ MEDIUM-SIZED AGENCY: A collection agency with a headcount between 30 and 200 will likely have a pan-USA license. They will have a client portal, performance reporting, security, and adequate data standards. The owner of the collection agency will micro-manage performance and client satisfaction. Medium-sized collection agencies almost always exceed recovery rates compared to large collection agencies.

2. Technology and Security:

A third-party collection agency should have high-security standards like the “PCI or SOC 1 or SOC 2” compliance and certificates to prove it. They should have a “Client Portal” on which you can submit new accounts, stop service, and report payments. “Client Portal” should be secured with an SSL Certificate (Secure Sockets Layer certificate), ensuring that the communications are encrypted and cannot be stolen by hackers.

3. Location: 100% USA based.

Preference should be given to a collection agency that has all their staff located in USA and not in countries like the Philippines, Mexico, India or China. This includes support staff, software development staff, and call centers. Google around, and you will find numerous news articles about critical personal data stolen/sold by dishonest employees in foreign countries. Information being handled by USA citizens/residents is covered under strict USA laws and punishable in USA courts. We feel that once the data leaves USA shores, you can never be in 100% control of it. What if a foreign employee sells personal data to the bad guys?

4. Performance / Collection rates:

Although recovery rates vary across industries, regions and the quality of debt, it is always good to ask if their recovery rates meet the industry average. Some may say “YES or ABSOLUTELY”. But getting a response back that their recovery rates “EXCEED” the industry average is quite self-assuring.

5. Sales Experience and Explanation of products:

Collection agencies make more money when accounts are submitted in contingency services ( Collection Calls or Legal Suit).

Do not simply fall for the “No Recovery -No Fees” slogan.

In contingency services, they get to keep 40% to 50% of the total amount recovered. But, for accounts with an age of debt between 60 and 120 days, it is better to use the fixed fees “Collection Letters” service, as it is a low-cost option and still delivers stellar recovery rates. Only those accounts which remain unpaid after this step should be transferred to the Contingency collections.

6. Validity Length of Accounts Purchased:

Most collection agencies expire accounts purchased under the Collection Letters service in 1 or 2 years. Only a handful of agencies out there have no expiration dates on these. It means accounts purchased can be used even beyond two years. This is a great money saver as one does not end up losing money to a collection agency (unused accounts). The agency was hired to recover your money, not to lose more money.

7. Are the letters printed in Black/White or Colored print:

Collection agencies that print demand letters in colored prints get far superior recovery rates. So paying slightly more for colored print results is highly recommended as they tend to grab better attention of the debtors ( read it as “greater worry” for debtors).

8. Debt Collection Guarantee:

Many agencies offer a guarantee to recover at least twice the money invested under the collection letters service. Although it comes with fine print, it is certainly a great assurance.

9. Quality of Customer Support:

Do they have a toll-free number, and do their operational hours suit you? Give it a try, call the Customer Support number anyway even before you hire them, and see for yourself how long does it take to get through a real person. If you did not get a real person on the first try, try once more after some time.

10. Adherence to laws:

Collection agencies are supposed to follow many laws like Fair Debt Collection Practices Act (FDCPA), Fair Credit Reporting Act (FCRA), and the Telephone Consumer Protection Act (TCPA). They are also supposed to be licensed and insured. If a collection agency is in the news for repeated violations, avoid them.

11. Contractual Agreement Verbiage:

Before signing up for those important contractual agreement pages, take an hour and carefully read the agreement. Make sure that it contains nothing that is not agreeable to you. If something bothers you, contact another third-party collection agency and read their agreement, and maybe you like this one better.

12. Collection Cost:

Always select a third-party collection agency with better recovery rates, not the cheapest one. If an agency invests more in its resources, quality of letters, and All-American staff, it may be 10% more expensive than its peers, and there is nothing wrong with that.

Paying a few hundred more now will likely result in thousands more later in your pocket. Do not go for the cheapest agency, but the better one. Ask the sales agent why their service is slightly more expensive than other agencies, I am sure you will like/appreciate his answer, and do not be surprised if he offers to match the discounted rates.

Do they send five collection letters per account submitted? Some collection agencies cut corners by sending only 3 or 4 collection letters.

13. Credit History Reporting

Do they offer to report unpaid accounts to credit reporting agencies like Equifax, Transunion, and Experian?

14. Debtor Scrubs:

Data scrubs are performed on all accounts submitted: Litigious Debtor, Bankruptcy and USPS Change of Address. Not all agencies offer the Litigious Debtor scrub, and protecting you from potential lawsuits is extremely important.

15. Bilingual Collectors:

Can they do debt collection in both English and Spanish? You will need Spanish-speaking debt collectors for debtors who do not understand English that well.

16. Legal Collections Service:

Accounts that complete the Collection Calls service can be further transferred for Legal Collections. Ask whether the third-party collection agency has a national network of lawyers.

17. Medical Collections:

Ensure that the collection agency follows HIPAA privacy guidelines.

Things that do NOT matter much:

1. A Collection agency located near you. Most agencies can handle accounts nationwide and have contracts with local lawyers if needed at no extra cost.

2. Yelp/ Google reviews. No one likes debtors leaving third-party collection agencies’ most negative reviews. Getting 5-star reviews by paying someone is not hard. I suggest avoiding those. BBB reviews are still more reliable.

You can contact us for your debt collection needs. We will connect you to a good third-party collection agency based on your requirements at no cost.

Out of 320 million residents in USA, about 235 million people are English language native speakers. The remaining 90 million people may be able to communicate (well or somewhat) in English, but it is not their native language.

Nosotros cobramos sus cuentas morosas Need a Multilingual Collection Agency (Agencia de cobros) ? Contact us

Millions of people in the USA can hardly communicate in English and entirely rely on talking to someone who can speak their native language.

Stats: Non-Native English speakers in the USA

• Spanish – 41 million native speakers
• Chinese – 3.4 million native speakers
• Tagalog (Filipino) – 1.7 million native speakers
• Vietnamese – 1.5 million native speakers
• Arabic, Korean, Russian, German, Portuguese, Hindi, French, Urdu, etc. are other prominent languages.

Hispanics form about 17% of the nation’s total population. Regarding debt collections, hiring a collection agency that can send “Collection Letters” in both English and Spanish is essential. Additionally, they should have a few “Debt Collectors” in their call center who can speak Spanish when needed. Support for other languages may be a bonus but not mandatory.

The bilingual staff of a Collection Agency should know and adhere to all regulations of FDCPA and applicable collection laws. Collectors should be able to inform the debtor that the call is from a debt collector, and they are calling to collect a debt, talk about the debt, negotiate repayment plans, take payments over the phone, explain the consequences of not paying, and even answer his questions, all in fluent Spanish. 

Suppose an English-speaking debt collector tries to communicate with a Spanish-speaking debtor. In that case, it can sometimes anger both parties, lead to unwanted compliance issues and lawsuits and achieve lower collection rates. For a debtor to understand his obligation to pay and the consequences of not paying, it is essential to communicate appropriately in a language that the debtor understands.

There are many education centers, financial institutions like banks & credit unions, pay-day loan centers, doctors, dentists, schools and phone companies that cater primarily to Spanish-speaking individuals. A bilingual collection agency is mandatory for them.

Contact us if you are looking for a Collection Agency with Multilingual/Spanish-speaking recovery agents.

We have published two collection letters for medical and dental practices. However, this is a fairly generic format and can be referenced for small business debt collections as well.

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Give your debtor one last chance?
Send a final letter, give 15 more days to settle before involving a collection agency. Mention your intention clearly in this letter.

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A final letter + invoice from “Dr. William Joe” to his patient “John Doe”
( Assuming that 45 days have passed since the payment was due.)

From,
Dr William Joe,
123 Main Street,
Katy, TX, 44920

Phone: (777) 123-4567
Fax # (777) 123-4568

Email: accounts@drwilliamjoekatytexas.com
Website: www.drwilliamjoekatytexas.com

Date: 01/01/2019
JOHN DOE
872 CONVAY STREET,
LAS VEGAS, NV, 89408

Dear John Doe,

We are disappointed that we have not received payment from you regarding your past due balance. Your account is in serious jeopardy of being reassigned to an outside collection agency. In order to prevent your account from further action or to prevent negative marks to your credit history, please make payment within 15 days by check, cash, western union or credit card.

If your payment is already on its way, we thank you and ask that you please disregard this notice. If you are unable to make payment in full due to financial difficulties, we encourage you to discuss a reasonable payment plan so you can satisfy your obligation and keep your account in good standing. Please do not hesitate to call patient accounts at (777) 123-4567. We are also attaching an invoice of $2500 for the treatment you had received.

Reference Number: 12ABC678
Principal Amount: $2,300
Interest Amount: $100
Total Debt: $2,400

Sincerely,

Patient Accounts
Dr. WILLIAM JOE

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Still not getting paid (after 15 days)?
Transfer this account to a collection agency without delay.
A sample Debt Collection Agency’s letter is published below.

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Sample Debt Collection Letter from “XYZ COLLECTION AGENCY ” to the patient “JOHN DOE” on behalf of “Dr. WILLIAM JOE”

Dear JOHN DOE,

ABC CLIENT has asked us to contact you regarding your account. Their records show that you owe $2,500.00.

Please send a payment of $2,500 for ABC CLIENT using the bottom portion of this letter or contact them at (777) 123-4567 to make payment arrangements that are satisfactory with our office.

Unless you notify this office within 30 days after receiving this notice that you dispute the validity of this debt, or any portion thereof, this office will assume this debt is valid. If you notify this office in writing within 30 days from receiving this notice that you dispute the validity of this debt, or any portion thereof, this office will obtain verification of the debt or obtain a copy of a judgment and mail you a copy of such judgment or verification. If you request this office in writing within 30 days after receiving this notice, this office will provide you with the name and address of the original creditor, if different from the current creditor.

Thanks for your cooperation.

THIS COMMUNICATION IS FROM A DEBT COLLECTOR. THIS IS AN ATTEMPT TO COLLECT A DEBT AND ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE.

Sincerely, XYZ COLLECTION AGENCY, INC.
1111 KIRSTEN STREET, ROHNERT PARK, CA, 94928

Our business hours are Monday through Friday, 8:00 am through 9:00 pm Pacific Standard Time and on Saturday from 8:00 am through 2:00 pm Pacific Standard Time.

NOTICE: PLEASE SEE REVERSE SIDE FOR IMPORTANT INFORMATION
Calls inbound and outbound may be recorded and monitored

Date of Service: 01/01/2019
Reference Number: 12ABC678
Patient’s Name: MARY DOE
Name of Provider: Dr. WILLIAM JOE
Principal Amount: $2,300
Interest Amount: $200
Total Debt: $2,500

RETURN SERVICE REQUESTED
To: JOHN DOE 872 CONVAY STREET, LAS VEGAS, NV, 89408	SEND PAYMENTS TO: Dr. WILLIAM JOE, 123 Main Street, Katy, TX, 44920

Collection Letters and Collection Calls from a Debt Collection Agency puts a humongous pressure on your debtor, versus when you send a letter in your name. 

Contact us for your debt collection needs.

( Note: Above sample letters are for reference purposes only. Please speak to an expert legal attorney to alter or add appropriate verbiage. )

Credit card defaults require immediate resolution. This is because credit card debt is unsecured, meaning the borrowers do not have to provide collateral for the money they borrow. About 1.8% of credit card accounts in America remain at least 30 days past due. A good economy’s credit card default rate is around 2% and often shoots above 4% during slowdowns or recessions.

Accounts that defaulted on their credit card bills for over 60-90 days are usually forwarded to a professional debt collection agency since credit card issuers do not have enough time and in-house expertise to keep following up with defaulters.

It is important for your collection agency to have a thorough understanding of the laws governing credit card debt recovery and to tailor their collection strategy to each individual’s unique circumstances. For example, people with higher credit scores, temporary financial setback, good payment history, steady income, low overall debt and those who engage in communication are more likely to pay with persistent efforts, compared to other defaulters.

Recover your unpaid credit card bills: Contact Us A collection agency with nationwide coverage | High recovery rates

Many debtors cannot pay the full amount they owe, leading to negotiations for a reduced settlement. This process can be complex and time-consuming. Recovering credit card debt often takes a significant amount of time and resources.

Handling credit card defaults is essential for both consumers and credit card issuers. Defaulting on a credit card can have severe consequences for consumers, including damage to credit scores, increased interest rates, and legal actions. Here are steps for both parties on how to handle credit card defaults:

For Consumers:

1. Communication with the Issuer: If you are facing financial difficulties and believe you might default on your credit card payments, it is crucial to communicate with your credit card issuer as soon as possible. They may be able to work with you to develop a payment plan.
2. Budgeting and Prioritizing Payments: Create a budget and prioritize your spending. Focus on essential expenses and allocate funds to pay down your credit card debt. It may be necessary to cut back on non-essential spending.
3. Seeking Assistance: Consider speaking with a credit counseling agency. They can provide guidance and sometimes negotiate with credit card companies on your behalf.
4. Debt Management Plan: A credit counseling agency might suggest a debt management plan, where you deposit monthly money with the counseling organization, which then pays your creditors. This is often accompanied by concessions from creditors to lower interest rates or waive fees.
5. Legal Advice: If your debt situation is severe and the credit card issuer is taking legal action, it might be wise to seek legal counsel.

For Credit Card Issuers:

1. Monitor Accounts: Credit card issuers should closely monitor accounts for signs of distress, such as missed payments or sudden increases in balances.
2. Early Intervention: If an account shows signs of distress, the issuer should proactively contact the customer to discuss their circumstances and options.
3. Flexible Repayment Options: Offering flexible repayment options or temporarily reducing the interest rate can sometimes help a consumer avoid default.
4. Debt Collection and Legal Action: In cases where an account has defaulted and the customer is not responsive to communication attempts, the issuer may need to engage a debt collection agency or take legal action to recover the debt.
5. Charging Off Debts: If all efforts to collect on a defaulted account have been exhausted, credit card issuers might ultimately charge off the debt as a loss. They can also sell the debt to a third-party collection agency.

Both parties should be aware of the laws and regulations that govern credit card debts and defaults in their jurisdiction. It is also essential for consumers to understand their rights under consumer protection laws.